Is your debt growing and it’s looking like you may need to file for bankruptcy? There is no need to be stressed out. Plenty of people have gone through this and rebuilt their lives. Countless individuals have determined that bankruptcy is the best way to alleviate their personal financial burdens. The piece that follows includes useful ideas for ensuring that the bankruptcy process goes as smoothly as possible.
Have a good look around the Internet to see what information is relevant to you regarding bankruptcy. The United States DOJ, along with a number of other bankruptcy institutes and attorneys specializing in bankruptcy can give you invaluable information. The more information you have, the more confident you can be about any decision you make and you will know that you are doing the best thing possible for your situation.
Credit Card
Don’t use a credit card to pay off your taxes before filing for bankruptcy. In many areas of the country, this debt will not be dischargeable, and you could be left owing a significant amount to the IRS. Keep in mind that if the tax debt is eligible to be discharged, then the credit card debt is also dischargeable. If you live in an area where tax can be discharged through bankruptcy, financing your tax bill is pretty pointless.
Be warned that after your bankruptcy, you may stand out as a leper to credit institutions. You may be unable to get a simple credit card. If so, apply for a secured credit card. This will allow you to start building a good credit history while minimizing the bank’s risk. Once you’ve built up a history of on-time payments, you may start getting unsecured credit again.
You should be able to meet with a specialized lawyer for free to ask your questions. Most lawyers provide a consultation for free, so consult with many of them before picking which one you want to hire. Therefore consult with different lawyers and get a feel for them, then decide which one suits your needs You do not need to make a decision immediately after the consult. Take your time, and schedule consultations with more than one lawyer.
It is a good idea for you to hire a bankruptcy to handle your bankruptcy process. Bankruptcy is complicated, and having someone to help you navigate the process is crucial. Personal bankruptcy attorneys can help make sure everything is done properly.
Familiarize yourself with the bankruptcy code before you file. This area of law is in constant flux and it is imperative that you know where the law stands at the time you file for your bankruptcy. To stay up-to-date on these laws, check out your state’s government website.
Learn and gain a firm grasp of the differences in applying for Chapter 7 bankruptcies versus Chapter 13 bankruptcies. There is a wealth of information online about each type of bankruptcy and their respective pluses and minuses. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
When your income surpasses your bills, you should not be filing bankruptcy. Although you may see bankruptcy as a free pass to eliminate your debt, if you can slowly whittle away at your debt with your income, it will be much better than killing your credit score with a bankruptcy filing.
Do a little bit of research into the regulations having to do with filing for bankruptcy before you begin the process. The bankruptcy code contains several provisions that can raise serious obstacles in your case. Some mistakes in your papers can cause your case to be dismissed. This is exactly why it’s imperative that you take the time necessary in order to research what you can about bankruptcy. Doing this will make the process easier.
Even if you become employed soon after filing for bankruptcy, you should continue with your plan. Although you have a new job, bankruptcy may still be right for your situation. The timing of your bankruptcy is important. If your case is filed before you begin your new job, any repayment you must do will be calculated without the extra income.
Reconsider going through a divorce as it could put you into a rough financial situation. Many people tend to get divorced and have to immediately file for bankruptcy due to not foreseeing future financial trouble. Thinking divorce through is the smart thing to do.
Some attorneys may offer to contact creditors in regard to any delinquent accounts in your name. This number can be given to creditors and collection agencies so that they can confirm that you are filing bankruptcy. Then, you won’t have to worry about any further harassing phone calls.
Know that you are able to re-file if you’ve made a mistake in filing for bankruptcy. This should be done within a month after filing, as automatic stay expires after this. If you need more than the allotted 30 days you should ask the judge for an extension if you have good cause.
Bankruptcy is never a way to avoid paying your fair share of federal taxes. Some people use a credit card to pay taxes, and shortly thereafter, they file for bankruptcy. Do not assume that the credit card debt you incurred by charging your taxes will be wiped out with a bankruptcy filing. Remember that even if you use a credit card to pay for your taxes while you file for bankruptcy, you are still going to owe the amount due.
As mentioned at the beginning of the article, you are not the only person in the world who has found themselves needing to file bankruptcy. Having read this article, you should feel better prepared to navigate this process. Use the information here to help see you through a smooth bankruptcy.
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